New legislative amendments strengthen the maritime transport sector and ship registration in Egypt.

Egypt continues to consolidate its position as a leading global trade hub through strategic steps aimed at strengthening the transportation and logistics sectors. As part of its ongoing efforts to attract local and foreign investment, particularly in maritime transport, the legal system has recently undergone substantial legislative amendments aimed at encouraging the registration of ships under the Egyptian flag and expanding the national fleet.

The most prominent features of these amendments are:

1. Expanding the scope of eligibility for Egyptian citizenship for ships:

Two new provisions have been adopted allowing foreign vessels to enjoy Egyptian nationality in the following cases:

When a foreign vessel is chartered without a crew by an Egyptian natural or legal person for a period of no less than two years.

When a foreign vessel is chartered under a finance lease to an Egyptian natural or legal person, where the vessel retains its Egyptian nationality throughout the lease term.

2. Restructuring registration fees:

The registration fees for ownership or rights in rem for ships have been set at 1 Egyptian pound per registered gross ton, provided that the amount is not less than 1,000 pounds and does not exceed 5‰ (five per thousand) of the total registered tonnage, reflecting financial flexibility and new incentives for owners and investors.

3. Determining the age of ships authorized to fly the Egyptian flag:

Under the new amendments, ships must not exceed 25 years old when registered under the Egyptian flag, while cruise ships must not exceed 20 years old.

4. Allowing temporary registration under a foreign flag:

Egyptian shipowners can now suspend a vessel’s registration in Egypt when chartering it without a crew for more than two years, allowing it to be temporarily registered under a foreign flag for the duration of the charter.

Implications of amendments on the maritime sector

These steps represent a qualitative shift that enhances the competitiveness of the maritime transport sector in Egypt by:

Attracting international investors who wish to benefit from a flexible and stimulating legal system.

Supporting the national fleet and strengthening its presence in the regional and international markets.

Reducing the costs associated with ship registration and stimulating expansion and modernization.

Our company was honored to actively contribute to the legal discussions that paved the way for the approval of these amendments, which represent a strategic legislative shift that will contribute to the revitalization of the Egyptian maritime sector in the coming period.

Next step: Implementing regulations

The executive regulations complementing these amendments are expected to be issued within three months, pursuant to decisions by the relevant minister. We will continue to closely monitor developments and provide advice and technical support to entities wishing to benefit from this new and promising legal environment.